{"id":5860,"date":"2016-12-09T06:28:09","date_gmt":"2016-12-09T11:28:09","guid":{"rendered":"http:\/\/homeadditionplus.com\/dev\/?page_id=5860"},"modified":"2017-05-18T18:16:13","modified_gmt":"2017-05-18T23:16:13","slug":"luxury-home-sales-hold-their-value","status":"publish","type":"page","link":"https:\/\/homeadditionplus.com\/dev\/real-estate\/luxury-home-sales-hold-their-value\/","title":{"rendered":"Why Luxury Homes hold their Value Longer in a Declining Housing Market"},"content":{"rendered":"<h4><span style=\"color: #008000;\"><strong>The Luxury Home Market frequently continues to Thrive in a Declining Housing Market<\/strong><\/span><\/h4>\n<p>By Mark J. Donovan<br \/>\n<script type=\"text\/javascript\"><!-- google_ad_client = \"pub-3988490936633155\"; \/* Homepage_Home_Improvement_468x15_ATF, created 8\/13\/10 *\/ google_ad_slot = \"6539705898\"; google_ad_width = 468; google_ad_height = 15; \/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div class=\"KonaBody\">\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td width=\"50%\">\n<p align=\"center\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- New_300x250_051317 --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:inline-block;width:300px;height:250px\"\n     data-ad-client=\"ca-pub-3988490936633155\"\n     data-ad-slot=\"4202793463\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>\n<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td style=\"text-align: left;\" width=\"49%\">The housing market has been on the decline for the last couple of years now and everything you read suggests it will continue for some time longer. One segment of the housing market, however, that has proved to hold its head up during this housing recession is the luxury home market. America\u2019s wealthiest still seem to have had a penchant for buying new luxury homes during this downturn. So much so, that luxury home and vacation home sale prices have continued to rise at a steep rate during this same time period.<\/p>\n<p><strong>Reports on Luxury Home Sales<\/strong><\/p>\n<p>Some reports are indicating that the wealthiest 10% of the nation\u2019s households may account for nearly half the home sales this year.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>So what\u2019s motivating the nation\u2019s wealthiest households to continue to buy these high end homes, and are the wealthy actually setting themselves up for a major correction in their own private housing market?<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"text-align: left;\" width=\"50%\"><strong>Luxury Homes and Wealth<\/strong><\/p>\n<p>Not to anyone\u2019s surprise, wealthier households have high incomes and large net assets. As a result, contrary to the average American, the wealthiest households are immune to the other economic pressures that cause many of us to pause sometimes in making large purchases. With incomes greater than $250K per year and net assets in excess of $3 million, wealthy households are resistant to higher mortgage interest rates, inflation, and other household cost increases such as groceries and energy costs.<\/td>\n<td width=\"1%\"><\/td>\n<td style=\"text-align: center;\" width=\"49%\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5688\" src=\"http:\/\/homeadditionplus.com\/dev\/wp-content\/uploads\/2016\/12\/home_for_Sale.jpg\" alt=\"Vacation homes and luxury homes hold their value.\" width=\"311\" height=\"175\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Second, wealthier households in general have larger appetites than the average household. Historically their diet regularly has included big-ticket items such as homes, automobiles, and boats.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"text-align: left;\" width=\"50%\">Over the past couple of year\u2019s luxury home and vacation homebuilders have been more than happy to help feed the luxury home housing market segment. They have continued to build high end luxury homes at a supply rate slightly below the demand level, thus enabling a market segment scarcity and a reason for dramatically increasing prices. At some point, however, even the luxury home market will begin to cool. There are hints that this may already be the case.<\/p>\n<p>At some point, even the wealthiest households recognize poor value when they see it. Also, assets that see explosive growth over short periods of time also have the tendency to reverse. When that point actually comes, the luxury home market will probably retrace. Until that point comes, however, luxury homes will probably continue to thrive.<\/td>\n<td width=\"1%\"><\/td>\n<td style=\"text-align: center;\" width=\"49%\"><a href=\"http:\/\/homeadditionplus.com\/dev\/home_addition_bid_sheets\/new-home-construction-bid-sheet\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1294 size-medium\" src=\"http:\/\/homeadditionplus.com\/dev\/wp-content\/uploads\/2016\/09\/New-Home-Construction-Bid-Sheet-218x300.jpg\" alt=\"New Home Construction Bid Sheet\" width=\"218\" height=\"300\" srcset=\"https:\/\/homeadditionplus.com\/dev\/wp-content\/uploads\/2016\/09\/New-Home-Construction-Bid-Sheet-218x300.jpg 218w, https:\/\/homeadditionplus.com\/dev\/wp-content\/uploads\/2016\/09\/New-Home-Construction-Bid-Sheet-768x1056.jpg 768w, https:\/\/homeadditionplus.com\/dev\/wp-content\/uploads\/2016\/09\/New-Home-Construction-Bid-Sheet-745x1024.jpg 745w, https:\/\/homeadditionplus.com\/dev\/wp-content\/uploads\/2016\/09\/New-Home-Construction-Bid-Sheet.jpg 1200w\" sizes=\"auto, (max-width: 218px) 100vw, 218px\" \/><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<hr \/>\n<p><span style=\"color: #008000; font-size: large;\"><strong>For help on building a home addition<\/strong><\/span>, see HomeAdditionPlus.com&#8217;s <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" title=\"Home Addition Bid Sheets\" href=\"http:\/\/homeadditionplus.com\/dev\/home_addition_bid_sheets\/\">Home Addition Bid Sheets<\/a><\/span><\/strong>. Our Home Addition Bid Sheets provide you with the knowledge and information on how to plan a home addition project, and what to look for when hiring contractors. They also include detailed cost breakdown tables and spreadsheets for estimating your own new home addition building costs.<\/p>\n<h3 align=\"left\"><span style=\"color: #008000; font-size: large;\"><b>Related\u00a0Information<\/b><\/span><\/h3>\n<ul>\n<li><span style=\"font-size: large; color: #0000ff;\"><b><a style=\"color: #0000ff;\" href=\"http:\/\/homeadditionplus.com\/dev\/real-estate\/home-remodeling-projects-that-add-value\/\">Home Remodeling Projects that Add Value<\/a><\/b><\/span><\/li>\n<li><span style=\"font-size: large; color: #0000ff;\"><b><a style=\"color: #0000ff;\" href=\"http:\/\/homeadditionplus.com\/dev\/real-estate\/new-tax-breaks-for-energy-efficient-home-improvements\/\">Tax Breaks for Energy Efficient Home Improvements<\/a><\/b><\/span><\/li>\n<li><span style=\"color: #0000ff; font-size: large;\"><b><a style=\"color: #0000ff;\" href=\"http:\/\/homeadditionplus.com\/dev\/real-estate\/green-home-building\/\">Green Home Building &#8211; Not Yet the Wave of the Future<\/a><\/b><\/span><\/li>\n<\/ul>\n<hr \/>\n<h3><span style=\"color: #008000; font-size: large;\">Free Home Addition Price Quotes with No Obligation!<\/span><\/h3>\n<p>Fill out our 3-5 minute quick and easy form, and receive a free price quote\u00a0on a house addition from one of our prescreened and licensed home addition contractors. This process is free and there is no obligation to continue once you receive your house addition price estimate.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.inforequests.com\/pub5x\/\/?allowRefNet=N&amp;layout=H&amp;PublisherSubID=Room_Addition_Bottom&amp;url=http:\/\/g.gaesy.com\/cgi\/r?;n=203;c=622397;s=4383;x=7936;f=201006161516140;u=j;z=TIMESTAMP;&amp;servicescheckbox=ROOM_ADDITIONS&amp;submit=submit\" width=\"660\" height=\"560\" frameborder=\"0\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Luxury Home Market frequently continues to Thrive in a Declining Housing Market By Mark J. Donovan The housing market has been on the decline for the last couple of years now and everything you read suggests it will continue for some time longer. One segment of the housing market, however, that has proved to hold its head up during this housing recession is the luxury home market. America\u2019s wealthiest still seem to have had a penchant for buying new luxury homes during this downturn. So much so, that luxury&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2027,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-5860","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Luxury Homes hold their Value Longer in a Declining Housing Market - HomeAdditionPlus.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/homeadditionplus.com\/dev\/real-estate\/luxury-home-sales-hold-their-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Luxury Homes hold their Value Longer in a Declining Housing Market - HomeAdditionPlus.com\" \/>\n<meta property=\"og:description\" content=\"The Luxury Home Market frequently continues to Thrive in a Declining Housing Market By Mark J. Donovan The housing market has been on the decline for the last couple of years now and everything you read suggests it will continue for some time longer. One segment of the housing market, however, that has proved to hold its head up during this housing recession is the luxury home market. America\u2019s wealthiest still seem to have had a penchant for buying new luxury homes during this downturn. 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